How Many Products Do You Really Need in Your Small Business?

One of the biggest mistakes small business owners, and even big retailers, make is thinking that more products = more sales.

It feels logical. The more choice you offer, the more chances you’ll have of making a sale and appealing to more customers, right?

But in reality, too much choice can actually slow your sales down, tie up cash in stock, and leave customers feeling overwhelmed.

Think about how you use Netflix. You don’t scroll through every film they have, you either search for something specific, or browse the “most watched,” “new releases,” or the genre you’re in the mood for.

Your customers shop the same way. They don’t want to scroll endlessly through hundreds of products, they want you to guide them to the right choice.

And from your side, wouldn’t it be easier to grow your sales by selling more of a few strong products rather than spreading your effort across hundreds? Imagine how much simpler life would be if you only had to focus on writing descriptions, SEO, photography, and meeting minimum order quantities for 20 products instead of 200.

Of course, you’ll want more than one product in your business. But the principle is simple: the fewer products you can get away with, the more efficiently you can spend your time and money.

If you’re feeling stuck, adding products on a whim and losing control of your range, don’t worry. I’ll walk you through some simple steps to check your numbers, see if you’ve got too many products, and figure out how many you actually need to bring calm, focus, and profit back into your business.

What Is Rate of Sale (ROS) and Why It’s the Key to Managing Your Product Range

Your Rate of Sale (ROS) is a simple number that shows how quickly your stock is selling. It’s one of the easiest ways to check if you have too many products for the amount of sales you’re making.

📱 Formula:

Rate of Sale = Units Sold ÷ Weeks ÷ Number of Products

👉 Example:

60 candles sold ÷ 12 weeks ÷ 3 products = 1.67 units per product per week

In plain terms, each candle sells about one to two times a week. If your ROS is very low, it’s a sign your product range might be too large for your current sales volume.

Why ROS matters:

• A healthy ROS = products moving, cash coming in, space for newness, more buying power to negotiate prices.
• A low ROS = slow sales, tied-up money, risk of overstock.

How to Use Rate of Sale (ROS) to Check If You Have Too Many Products

Once you’ve worked out your Rate of Sale (ROS), you can use it to check whether your product range is too big for the amount of sales you’re making.

👉 Example:

If you sell 100 units per week but have 400 products, on average you’ll only sell 1 of each product every 4 weeks. That works out to a ROS of just 0.25 units per product per week.

For higher-value items (like jewellery or furniture), that might be fine.

But for most small businesses, you’ll want products selling faster than that to keep cash flowing.

Why this matters:

• Slow-selling products mean cash is tied up in stock.
• If you’re buying products or materials to minimum quantities (e.g. 6 at a time) but only selling 1 per month, it could take 6 months just to clear that stock.
• That’s money and space that could be invested into products that sell faster or in other areas of your business.

What a Good Rate of Sale Looks Like

Your ideal Rate of Sale (ROS) depends on your product type and price point. High-volume, lower-cost items (like candles or skincare) should sell much faster than big-ticket items (like furniture or art).

Here’s a rough guide:

• Fashion / Apparel: 2–5 units per product per week
• Jewellery & Accessories: 1–3 units per product per week
• Candles, Skincare, Consumables: 3–8 units per product per week
• Homeware & Art Prints: 0.5–2 units per product per week
• Furniture / High-Ticket Items: 1–3 units per product per month

If your products are selling below these benchmarks, it may mean your range is too big for your sales volume or you need to drive more traffic to your shop.

How to Calculate the Right Number of Products for Your Small Business

You don’t need to guess how many products your business should have, you can work it out with a simple calculation.

1. Pick a time period. Start with your whole year, then later you can break it down into seasons or quarters.
2. Work out your average weekly sales units. Take your total sales for that period and divide by the number of weeks.
3. Divide by your target Rate of Sale (ROS). This gives you the number of products your current sales can support.

👉 Example:

Total sales for 2025 = 5,200 units

5,200 ÷ 52 weeks = 100 units per week

Target ROS = 0.5 (one sale every two weeks per product)

100 ÷ 0.5 = 200 products

This means that until you increase traffic and conversion to grow your sales, carrying more than 200 products will just dilute your sales across too many lines and slow everything down.

Important to remember:

• This is a guide, not a strict rule. Don’t panic if you’re a little over.
• Being 5 products over your target? Probably fine. Being 100 products over though? That’s when cash flow issues and overstocks start to bite.
• Your number of products doesn’t need to stay the same all year. You can break this exercise each quarter to plan your range by season. That way, you’ll know when to add seasonal newness and when to keep your range tight.

What to Do If You Already Have Too Many Products

If you’ve realised your range is bigger than you need, don't worry, you're not alone and you can bring it back under control with a few simple steps:

1. Review your bottom 20%. Look at the products that sell the slowest, have the lowest rate of sale (ROS) or bring in the least revenue. These are the first to consider cutting. Unless they have a purpose, like for marketing or PR.
2. Check for duplication. Do you have products competing against each other, like a Lavender Candle and a Lavender Lemon Candle? If they’re splitting sales, choose the stronger one and remove the other.
3. Clear through stock. Use discounts, bundles, or marketing campaigns to move slow sellers.
4. Don’t reorder. Once those products are gone, don’t bring them back unless they’ve proven themselves.

💡 Extra help: If you’re unsure which products to cut, check out my other blogs on why a product flopped and how to decide when to discontinue a product and how to clear through stock without hurting your brand. They’ll guide you through some next steps.

How Many Products Should a New Small Business Start With?

If you’re just starting out, it can be tempting to launch with a huge range to look credible, but in reality, more products usually mean more pressure, not more profit.

Keep it simple: Around 5–20 products is plenty for your initial launch.

That’s enough variety to test what your customers like without overwhelming yourself (or your bank account). You can always expand once you’re driving more traffic and know which products are performing best.

If you’ve set a sales target for your first year, you can use the same formula we covered earlier to work out roughly how many products you’ll need:

📱 Formula:
Target Weekly Sales ÷ Average Selling Price ÷ Target ROS = Rough Product Count

👉 Example:

Target weekly sales = £2,000

Average selling price = £30

Target ROS = 2

£2,000 ÷ £30 ÷ 2 = 33 products

That’s a much stronger way to build your range than guessing or adding products on a whim.

💡 Pro Tip: Start small, learn what sells, and grow with demand,  not the other way around.

But What About Christmas? How to Adjust Your Range for Peak Seasons

Your product count doesn’t need to stay the same all year,  it should flex with the seasons, especially around busy shopping periods like Christmas.

For example, you might need a slightly larger range between September and December to make the most of gifting demand. Just make sure you have a plan to sell through that extra stock once January arrives.

Remember, though your Rate of Sale (ROS) is usually higher in peak season, so products will move faster.

👉 Example:

Sept–Dec: your range target might be 20 products

Jan–Aug: your range target might drop back to 15 products

Those extra five could be seasonal items like festive candles or limited-edition gift sets. Once the season ends, discontinue them or mark them down to clear space for your core range.

💡 Tip: Always plan your seasonal launches with an exit strategy. Know how and when you’ll sell through those products, whether that’s via bundles, sales, or gift sets, so you don’t end up with leftover stock gathering dust in the new year.

Can I Still Add New Products to My Small Business?

Absolutely, this isn’t about stopping innovation altogether. Newness is important to keep your range exciting and your customers engaged.

When I worked as a merchandiser for big retailers, we were often called the “fun police” because we pushed back on endless new product ideas. But really, our job was to protect businesses from overstocks, wasted cash, and products that didn’t sell.

The key is to add products in a controlled and strategic way:

• Test small. Try no more than ten new launches at a time instead of 50 or 100. Do you really need all those new colours?
• Follow a one-in, one-out policy. Don’t let your range grow endlessly. If everything is performing well and you do want to expand, make sure your sales volume supports it.
• Make each product earn its place. New products should perform better than the ones they replace, not just add clutter.
• Give them time. Allow at least three months for each new product to prove itself before deciding whether to keep it in your range.

💡 Tip: Balance your core products (your reliable bestsellers) with newness (to keep your range fresh).

• Fashion brands often need more newness to stay relevant.
• Beauty or homeware brands can usually rely more heavily on core products that are always available.

Keeping this balance helps you stay creative without losing control of your stock or your cash flow.

Finding the Right Product Balance for Your Small Business

Adding more products doesn’t always mean more sales. In fact, an oversized range can slow down your stock movement, tie up your cash, and leave you with shelves full of overstocks.

The goal isn’t to offer everything, it’s to offer the right things.

Aim for balance: enough variety to excite your customers, but not so much that your stock gathers dust. This approach not only makes it easier for your customers to find what they want, but it also makes your business calmer, simpler, and more profitable to run.

Just like Netflix curates its content to guide viewers, your job is to guide your customers through a focused, profitable range.

Remember:

• More products don’t always mean more sales, they can slow you down.
• Rate of Sale (ROS) is your best tool to understand whether your range fits your sales.
• Streamline regularly, review your range each quarter to keep stock healthy and cash flowing.
• Balance core and newness, reliable bestsellers mixed with thoughtful new additions.
• Add with intention, every product should earn its place.

Your Next Steps

Use your Rate of Sale (ROS) to sense-check your range. If your product count is higher than your sales can support, pause, simplify, and refocus.

📥 Coming Soon: The Range Planning Template

A simple tool to map your products, set targets, and build a range that’s both beautiful and profitable. Sign up to my newsletter to be first to know when it’s live (plus get practical stock, sales, and range-planning tips straight to your inbox).